Movado’s Q1 Sales Fall 6%
The company attributed the decline to a “challenging” retail environment.
“We are pleased with our first-quarter results, which are in line with our expectations and reflect the successful execution by our team in a retail environment that continues to be challenging,” CEO Efraim Grinberg said.
“During the quarter, we drove positive momentum with powerful new product innovation led by the performance of our new Movado Bold Quest and strong double-digit growth at Movado.com, which accelerated with our spring television campaign.”
Grinberg highlighted the company’s previously announced plan to increase marketing spend to $25 million, ramping up in the second quarter, and the launch of a new Movado campaign in the fall.
In the first quarter ending April 30, net sales fell 6 percent year-over-year (6 percent on a constant dollar basis) to $136.7 million.
Movado attributed the decrease to sales declines at brick-and-mortar stores owned by wholesale customers, as well as those operated by Movado.
Quarterly sales in the U.S. were down 6 percent year-over-year while international sales fell 5 percent (6 percent on a constant dollar basis).
Gross profit was $75.5 million, or 55 percent of net sales, compared with $82 million, or 57 percent of net sales, in the previous first quarter.
The decrease in gross margin percentage in Q1 was attributed to an “unfavorable” change in channel and product mix, along with the decreased leverage of certain fixed costs due to lower sales.
Movado reiterated its guidance for the year ahead, expecting fiscal 2025 net sales to be between $700 million and $710 million, with gross profit of approximately 55 percent of net sales, and operating income in the range of $32 million to $35 million.
“We remain committed to executing our growth strategy, with our strong financial position allowing us to invest in targeted areas,” said Grinberg.
“We expect our amplified marketing messaging to grow brand awareness and deliver a return to sales growth in the second half of the year.”
The Latest
The “Moments” social media campaign emphasizes the emotional ties between natural diamonds and life’s special milestones.
The versatile “As We Are” collection features 14 pieces with interlocking designs allowing for 27 different looks worn around the body.
Letsile Tebogo will help to promote natural diamonds and the good they have done for his country.
The new year feels like a clean slate, inspiring reflection, hope, and the motivation to become better versions of ourselves.
The showcase, in its second year, will feature more than 20 international brands at its curated event from Feb. 2-4.
“My Next Question” guests Sherry Smith and Edahn Golan share their 2025 forecasts, from sales and marketing to what retailers should stock.
The seminar series covers topics from market trends and colored stone terminology to working with museums and growing an Instagram profile.
A Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’
LeVian is remembered for his leadership in the jewelry industry and for being a selfless and compassionate person.
Monishkumar Kirankumar Doshi Shah pleaded guilty to evading customs on more than $13.5 million of jewelry imported into the U.S.
Jemora Gemhouse’s inaugural auction, slated for March, will take place in Dubai and feature polished sapphires.
Quinn partnered with Gemfields to create “Crazy Love,” which features Zambian emeralds and Mozambican rubies across 10 pieces.
The catalog is 48 pages and features more than 100 styles.
The one-of-a-kind necklace was designed in celebration of the Chinese New Year, as 2025 is the Year of the Snake.
The gemstone show is slated to take place at the Scottish Rite Cathedral.
From raffles to auctions to donations, the industry is working to aid charities in Los Angeles amid the raging wildfires.
The suspects are accused of planning to kidnap a Miami jeweler and rob him of his cryptocurrency.
Francis “Gosh” Eiseb, 58, was a senior protection officer for Namib Desert Diamonds, also known as Namdia, in Windhoek, Namibia.
The online diamond and jewelry marketplace has expanded, introducing a new platform dedicated to colored gemstone trading.
The second annual learning forum for retailers is slated for March 13 at City Winery in Pier 57 in New York City.
Roy Safit took over the role on Jan. 1.
Sherry Smith shares data on the year gone by, including the breakdown between natural and lab-grown diamond sales.
The company also is matching donations made to Jewelers of America and the Diamond Council of America’s Jewelers Relief Fund.
Now in its fourth year, the program is expanding to include a list of “20 Under 40” for jewelry suppliers.
Core retail sales during the 2024 holiday season surpassed the National Retail Federation’s forecast.
The “Reach for Life” collection uses feather and arrow motifs to invite growth and inner curiosity.
Peter Smith pulls back the curtain on the often misinterpreted, and sometimes maligned, world of sales training.